Written answers

Wednesday, 23 September 2020

Department of Employment Affairs and Social Protection

Social Welfare Code

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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149. To ask the Minister for Employment Affairs and Social Protection the estimated full-year cost of measures (details supplied). [25849/20]

Photo of Heather HumphreysHeather Humphreys (Cavan-Monaghan, Fine Gael)
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1. The estimated cost of increasing the Fuel Allowance by two weeks, from 28 to 30 weeks is €18.3 million in a full year.

2. As the current weekly rates of payment are in excess of 2008 levels, no additional costs would arise.

3. The estimated full year cost of increasing the weekly rate of the State Pension Contributory, Widow(er)’s and Surviving Civil Partner’s Contributory Pension, Deserted Wife's Benefit (age over 66), Death Benefit Contributory Pension and State Pension Non-Contributory to €260 per week is estimated at €451.2 million. This costing includes proportionate increases for qualified adults and for those on reduced rates of payment where relevant.

4. The cost of a 110% Christmas Bonus payment is estimated to be circa €322 million in 2020.

5. The full year cost of increasing all weekly social assistance and social insurance payments by €10 per week is estimated to be €783.6 million. This costing includes proportionate increases for qualified adults and for those on reduced rates of payment where relevant.

6. The cost of increasing the Working Family Payment multiplier from 60% to 75% is estimated to be in the region of €92.5 million in a full year.

7. Child benefit is a monthly payment made to families with children in respect of all qualified children up to the age of 16 years. The payment continues to be paid in respect of children until their 18th birthday when they are in full-time education, or if they have a disability. It is estimated that the full year cost of extending the child benefit payment to 18 year olds in secondary level education is an additional €58.3 million per year.

8. The Department is not in a position to provide the cost of increasing the age of the youngest child to 18 years for receipt of One Parent Family Payment (OPF), without extensive analysis of the lone parent population which could potentially benefit from this provision. Firstly, this change could result in a cohort of lone parents that are currently not in receipt of a social welfare payment becoming eligible for a payment. Secondly, some customers could seek to move from alternative payments such as Jobseekers Allowance (JA), the Jobseeker’s Transitional Payment (JST) and the Back to Work Family Dividend (BTWFD) back to the OFP. Again, it would be difficult to estimate the magnitude of this flow between schemes. Finally, such a change to the scheme would also increase the incidence of dual payments of OFP and the Working Family Payment (formerly FIS). It is not possible to predict the impact on payments as a result of the interaction between both schemes without having detailed knowledge of individuals’ working patterns and the degree to which these might change.

9. Based on 2020 recipient numbers, the annual cost of increasing the Back to School Clothing and Footwear rates by €50 per child, from €150 to €200 per child in respect of children aged 4 to 11 and from €275 to €325 per child for children aged 12 years and over in second level education, is estimated at €13.2 million.

10. Each additional week of maternity benefit would cost approximately €10.3m. To increase the duration of paid maternity leave from 26 weeks to 52 weeks would cost approximately €267.8 million in a full year. It should also be noted that there are additional costs to the Exchequer as these estimates do not include the costs of salary top-ups for public/civil servants.

These costings are subject to change in the context of emerging trends and associated numbers of recipients.

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